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A restaurant is considering opening a branch at a different location. The new facility will cost $1,000,000 million and will be depreciated on a straight-line
A restaurant is considering opening a branch at a different location. The new facility will cost $1,000,000 million and will be depreciated on a straight-line to zero basis over a 20-year period. The new gym is expected to generate $500,000 in annual sales. Variable costs are 25 percent of sales, the annual fixed costs are $100,000, and the tax rate is 21 percent. What is the operating cash flow? Al 177,750 B) $175,000 C275,000 D)227.750 E)50,000
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